The Members of M/s. Archana Software Limited
Report on the financial Statements
I have audited the accompanying financial statements of M/s. Archana Software Limited (the Company ) which comprise the Balance Sheet as at March 31 2017 and the Statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
Management s responsibility for the Financial Statements
The Company s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ( the Act ) with respect to the preparation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 (asamended). This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act; safeguarding the assets of the Company;preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
Auditor s Responsibility
My responsibility is to express an opinion on these financial statements based on ouraudit. I have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.
I conducted the audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that I comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company s preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on the effectiveness ofthe Company s internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
In my opinion and to the best of my information and according to the explanations givento me the aforesaid financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31March 2017 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor s Report) Order 2015 ( the Order ) issued bythe Central Government of India in terms of sub-section (11) of section 143 of the Act wegive in the Annexure a statement on the matters specified in the paragraph 3 and 4 of theOrder to the extent applicable.
2. As required by Section 143 (3) of the Act I report that:
(a) I have sought and obtained all the information and explanations which to the bestof my knowledge and belief were necessary for the purposes of my audit.
(b) In my opinion proper books of account as required by law have been kept by theCompany so far as it appears from my examination of those books;
(c) The balance sheet the statement of profit and loss and the cash flow statementdealt with by this Report are in agreement with the books of account;
(d) In my opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;
(e) On the basis of the written representations received from the directors as on 31March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 from being appointed as a director in terms of Section164 (2) of the Act; and
| ||A.Saravanan B.com. F.C.A. |
| ||Chartered Accountant (M.No. 026101) |
|Place: Chennai || |
|Date: 31.07.2017 || |
Annexure to the Independent Auditors Report
The Annexure referred to in my Independent Auditors Report to the members of theCompany on the standalone financial statements for the year ended 31 March 2017 I reportthat:
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets atreasonable intervals. In accordance with this programme certain fixed assets wereverified during the year and no material discrepancies were noticed on such verification.In my opinion this periodicity of physical verification is reasonable having regard tothe size of the Company and the nature of its assets.
c. The company do not own any immovable property on its own.
(ii) As explained to me inventories have been physically verified during the year bythe management at reasonable intervals and no material discrepancies were noticed on suchverification. The procedures of physical verification of inventories followed by themanagement are reasonable and adequate in relation to the size of the company and thenature of its business.
(iii) According to the information and explanations given to me and on the basis of myexamination of the books of account the Company has not granted any loans secured orunsecured to companies firms Limited Liability Partnerships or other parties listed inthe register maintained under Section 189 of the Companies Act 2013. Consequently theprovisions of clauses iii(a)iii (b) and iii(c) of the order are not applicable to theCompany.
(iv) The Company has not given loans made investments guarantees and securitycovered under section 185 and 186 of the Companies Act 2013.
(v) The Company has not accepted any deposits from the public covered under section 73to 76 of the Companies Act 2013.
(vi) The provision of sub section 1 of section 148 of the companies Act 2013 regardingmaintenance of cost records is not applicable to the company.
(vii) According to the information and explanations given to me there is no amountspayable in respect of income tax service tax sales tax customs duty and excise dutywhich have not been deposited on account of any disputes.
(viii) Based on my audit procedures and on the information and explanations given bythe management we are of the opinion that the Company has not defaulted in repayment ofdues to bank financial institution and Government.
(ix) The company had not raised moneys by way of public offer or debt instruments.
(x) Based on the audit procedures performed and the information and explanations givento me I report that no fraud by the Company or any fraud on the company by its officersor employees has been noticed or reported during the year nor have we been informed ofsuch case by the management.
(xi) The company had not paid or provided Managerial Remuneration and hence therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013 is not applicable
(xii) The Company is not a Nidhi Company hence not applicable
(xiii) In my opinion and according to the information and explanations given to me thetransactions with the related parties were in accordance with sections 177 and 188 of theCompanies Act 2013
(xiv) The company had not made any preferential allotment or private placement ofshares or fully or partly convertibles debentures during the year under review.
(xv) The Company had not entered in to any non-cash transactions with directors orpersons connected with him.
(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
| ||A.SARAVANAN B.COM. F.C.A. |
| ||Chartered Accountant (M.No: 026101) |
|Place: Chennai || |
|Date: 31.07.2017. 3 || |